In a World Filled with Fake News Are Lawsuits the Right Course of Action?
Since its launch in 2017, Binance has quickly grown into a leading global cryptocurrency exchange. Over the years they have rolled out features such as SAFU, Binance DEX and the first IEO launchpad. Binance's rise in popularity could be contributed to listening to their community and addressing FUD head-on.
This led to Binance becoming one of the most reputable exchanges but a recent controversy with cryptocurrency publication the Block might change that.
The Block VS. Binance
Earlier this week, the Block published an article claiming that Binance's Shanghai offices were closed following a police raid. Some have attributed the article with the weekend dip Bitcoin and Binance Coin have experienced.
CZ was quick to respond as ever and quickly claimed that there was no police raid & Binance doesn't have a Shanghai office.
The Block released another article following the first, in an attempt to explain and justify their first story. In it they claim that they might have used the wrong terminology with the use of the term "police raid". Nevertheless, The Block also seemingly doubled down posting images of an alleged Binance Shanghai office.
FUD Fighting Fund
On the 22nd CZ took to Twitter yet again tweeting about fighting FUD, only to be joined by Justin Sun. They have proposed a "FUD Fighting Fund", with pockets 200 BTC deep.
That's a nice raise. I guess have to call (will put in 100btc as well). Expensive tweet, but let's make sure the fudders pay too.— CZ Binance (@cz_binance) November 22, 2019
How this fund will operate is anyone's guess at this moment.
CZ's Last Messages on the Topic
Many people are split on who to support in this current scenario. While the Block have published a questionable news piece with shady sources and not much to rely on, it could be seen as part of their free speech. This could be seen as one of cryptocurrencies richest men squashing a news source that he doesn't particularly like.
CZ has elaborated his position on Twitter.
2 A few misconceptions about freedom. Freedom of speech means you can express your opinions all you want. It does not mean you can spread fake news or lies, especially when lies you spread cause panic, prices to drop, and hurts others. Freedom does not mean you can hurt others.— CZ Binance (@cz_binance) November 24, 2019
4/4 We promote factual based journalism. We promote freedom of press.— CZ Binance (@cz_binance) November 24, 2019
Hopefully, this will be the end of this topic for me. Moving on to #buidl. Lots of things in the works.
While the Block has published a dubious news piece which has caused FUD and damages, one should ask if legal action is the appropriate response. Essentially the Block have already damaged their reputation & credibility deeply as a news source. It is doubtful that anyone will take their articles very seriously anytime soon and it could fade to obscurity.
This draw the question: "Is a lawsuit really necessary?"
Regardless, cryptocurrency related projects should consider better press relations in order to dispel FUD as it can take weeks for journalists to receive a response at times, if at all.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado